Friday, May 5, 2017

The Billionaire Monk: What is Baba Ramdev's Patanjali empire all about

Patanjali, the FMCG venture of Baba Ramdev, is today one of the biggest players in the sector in India.

Patanjali's
annual turnover for 2016-17 stood at Rs 10,561 crore. For the next
year, Baba Ramdev has set higher targets for Patanjali: greater presence
across India and increased production capacity.

Sharing his
vision for Patanjali, Baba Ramdev said at a press conference, "We would
grow more than double this year... By next year, Patanjali would be in
the leading position, and in most product categories it would be number
one".

To achieve this, mega production units in Noida (Uttar Pradesh),
Nagpur (Maharashtra) and Indore (Madhya Pradesh) are being set up which
will help Patanjali manufacture goods worth Rs 60,000 and more next year
as compared to Rs 35,000 crore currently.

HEALTH MEANS WEALTH

Baba
Ramdev's Patanjali has registered staggering growth since last year. In
2015-16, Patanjali's revenue figures stood at Rs 5,000 crore. In a
year, the Haridwar-based fast-moving consumer goods (FMCG) company's
revenue has zoomed to more than Rs 10,000 crore.

Patanjali's
Ayurved division is the star performer for Baba Ramdev's brand. The
Ayurved division registered Rs 9,346 crore in business for the financial
year 2016-17. This is followed by the Divya Pharmacy division (which
comprises medicines, oils, digestive churan etc.) which accounted for Rs
870 crore worth of sales.

With an eye on wider reach, Baba Ramdev said Patanjali plans to double its distribution channels from existing 6,000 to 12,000.

MILKING THE HOLY COW

Patanjali
ghee is the largest selling product of the company for 2016-17,
clocking Rs 1,467 crore in sales. Wrestler Sushil Kumar, a two-time
Olympic medal winner, has been chosen by Patanjali to advertise its
ghee. The product tagline emphasises on the "desi" factor, a word
synonymous with Baba Ramdev and Patanjali.

Patanjali's
oral brand Danta Kanti has recorded annual sales figures of Rs 940
crore. According to Patanjali, it now has a 15 per cent market share in shampoo (Kesh Kanti brand), 14 per cent in face wash and 50 per cent market share in honey (Patanjali Honey).

Denying
allegations of outsourcing manufacturing, Baba Ramdev said 95 per cent
Patanjali products are manufactured in-house. He said Patanjali doesn't
plan to enter new product segments this year, but wants to strengthen
its existing products.